Daily summary: Hawkish Fed fails to move USD

• Fed delivers 25 bp rate hike

• Dot-plot shows at least 6 more rate hikes this year

• Fed's QT may begin in May

• Disappointing US retail sales for February

• Oil pulls back, gold trades flat

• JPY the weakest, AUD the strongest among major currencies

European stock markets booked solid gains today with German DAX jumping 3.7%. Part of this move was fueled by a Financial Times report that claimed Russia and Ukraine are drawing up a peace agreement that will end the war. Content of the report was later rejected by Ukrainian authorities, who said that it only presented the Russian position. However, these comments came after the close of the European cash session and indices did not have a chance to react to them.

After Ukraine denied any significant progress was made in talks with Russia, US indices moved lower. Nevertheless, it was the FOMC decision that was a key event for Wall Street today. The US central bank delivered an expected 25 bp rate hike and signaled that a decision to begin QT may be made at the coming meeting in May. Moreover, the updated dot-plot showed that median expectation among FOMC members is for at least 6 more hikes in 2022. Economic forecasts pointed to a slower real GDP growth on the back of higher inflation.

Apart from the FOMC decision, there was one more important macro event today - release of US retail sales data for February. Report showed a weaker-than-expected retail sales growth. However, data for January was revised higher. Nevertheless, market did not experience any major reaction to this data.

When it comes to commodity markets, today was another day of oil sell-off. Drop was magnified by the aforementioned Financial Times report but has regained some ground after that report was denied by Ukraine. Gold pulled back on hawkish Fed decisions and forecasts but has regained ground during Powell's press conference.

Gold experienced some wild swings in the aftermath of FOMC decision and during Powell's presser. Precious metal currently trades flat on the day after defending $1,910 support zone. Source: xStation5